Business | Property

Slump 'not to hit global realty capital flow'

Real estate capital will continue to flow despite the current global fin-ancial storm, a conference on global capital markets was told at Cityscape Dubai on Monday.

  • By Natasha Marrian, Staff Reporter
  • Published: 00:18 October 7, 2008
  • Gulf News

  • Visitors at the International Exhibition Centre during the opening of Cityscape Dubai 2008.
  • Image Credit: Ahmed Ramzan/Gulf News
Image 1 of 3
123

Dubai: Real estate capital will continue to flow despite the current global financial storm, a conference on global capital markets was told at Cityscape Dubai on Monday.

Steve Williams of UK-based Real Capital said real estate capital was a key driving force in global markets. The UAE is the third largest investor in the world behind the US and Europe.

Fadi Moussalli, the regional director of Jones Lang LaSalle (Middle East and North Africa), said real estate was deemed a safe haven, especially for sovereign wealth funds, of which there was an abundance in the region.

The key driver of real estate investment in the Middle East is oil surpluses, although crude prices are falling sharply.

"GCC countries save 70 per cent of their oil revenues which feed into their SWF... also ego and pride, everyone wants the tallest, biggest, highest towers, we want our name to shine. This is essentially an emotional driver," he said.

Also, investors' local successes with real estate investment prompted them to replicate the models off shore.

Robert Lee, managing director of investment projects at Nakheel, however, said the company was taking a wait-and-see approach to the European and American markets, although it had investment plans overseas.

Mohammad Al Tawash, vice-chairman and president of Bahrain-based RealCapita, said the 30 per cent price correction in London, for example, was an opportunity, but the company "held back".

According to Anthony Juliano, managing director of the Dubai Investment Group, there was great value in public transactions and public equity in off-shore real estate.

"We are paying a lot of attention there right now," he said.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

Related Articles

  1. Dh350b makeover for Dubai

    Dh350b makeover for Dubai

    World's tallest buildings to feature in new Dh350b Dubai makeover project

  2. Deyaar studies takeover, merger plans

    Deyaar studies takeover, merger plans

  3. Dubai Properties' two projects worth Dh105b

    Dubai Properties' two projects worth Dh105b

    Dubai Properties' two projects worth Dh105b

  4. Shaikh Hamdan hails expo as 'best'

    Shaikh Hamdan hails expo as 'best'

    Cityscape takes off as Hamdan hails expo as 'best'

  5. Call for real estate rating agency

    Call for real estate rating agency

    Developer calls for real estate rating agency

Property

Gulf News
Gulf News classifieds
  5. Browse all jobs
  5. Browse all cars
  6. Browse all properties
  5. Browse all classifieds
Popular in Business
Business Editor's choice
Abu Dhabi's infrastructure spending
UAE

Abu Dhabi's infrastructure spending

New road networks to reignite construction sector.

Popular in GNTV
Popular in Pictures